Public Disclosure Copy The World Bank Implementation Status & Results Report MX: Expanding Rural Finance (P153338) MX: Expanding Rural Finance (P153338) LATIN AMERICA AND CARIBBEAN | Mexico | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 5 | ARCHIVED on 21-May-2018 | ISR32240 | Implementing Agencies: Financiera Nacional de Desarrollo Agropecuario, Rural, Forestal y Pesquero, Financiera Nacional de Desarrollo Agropecuario, Rural, Forestal y Pesquero Key Dates Key Project Dates Bank Approval Date:24-Nov-2015 Effectiveness Date:13-Jul-2016 Planned Mid Term Review Date:03-Sep-2018 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2020 Revised Closing Date:31-Dec-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project’s development objective is to expand the availability of finance to the rural economy. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name 1. Expanding Credit for Rural MSMEs:(Cost $375.00 M) 2. Strengthening Institutional Capacity for Sustainable Rural Finance:(Cost $30.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 5/21/2018 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MX: Expanding Rural Finance (P153338) FND is making remarkable progress towards the achievement of the Project Development Objective of expanding the availability of finance to the rural economy. Data on project outcomes as of end-December 2017 show that these institutions have disbursed 90,000 credits to 76,400 rural MSMEs with an average loan size of US$1,780. 81 percent of credit recipients are women, 12 percent are located in communities classified as marginalized or highly marginalized by the National Council for Population (CONAPO), and 10 percent are first-time borrowers from formal financial institutions. Non- performing Loans (NPLs) for the credits supported through the World Bank supported credit line is relatively low at 1.3 percent. 44% of the 90,000 credits were provided in the 3 states with the highest levels of poverty in Mexico (Veracruz 16%; Chiapas 15%; Oaxaca 13%). By sector: 81% are commercial, 12% agriculture, 4% industrial y 3% other sectors. To strengthen institutional capacity for sustainable rural finance, FND is working on reengineering of credit processes as a first phase towards modernizing its core banking systems. This consultancy service is expected to be completed before the end of the year. As part of its counterpart finance, FND has also provided 327 technical assistance in the form of consulting services – known as apoyos -- to 215 rural financial institutions. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  Moderate  Moderate  Moderate Macroeconomic  Moderate  Moderate  Moderate Sector Strategies and Policies  Moderate  Moderate  Moderate Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  Moderate  Moderate  Moderate Fiduciary  Moderate  Moderate  Moderate Environment and Social  Low  Low  Low Stakeholders  Moderate  Moderate  Moderate Other  --  --  -- Overall  Moderate  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Number of loans disbursed under project (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 80,159.00 89,476.00 74,800.00 Date 01-Sep-2015 30-Sep-2017 31-Dec-2017 31-Dec-2020 5/21/2018 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MX: Expanding Rural Finance (P153338) PHINDPDOTBL  Volume of total loans disbursed under project (cumulative), US$ million (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 123.00 160.00 374.00 Date 01-Sep-2015 30-Sep-2016 31-Dec-2017 31-Dec-2020 PHINDPDOTBL  Average non-performing loans ratio for PFIs receiving project funds (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.86 0.52 6.00 Date 01-Sep-2015 30-Sep-2017 31-Dec-2017 31-Dec-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  Volume of Bank Support: Lines of Credit - Microfinance (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19.00 22.12 187.00 Date 01-Sep-2015 30-Sep-2017 31-Dec-2017 31-Dec-2020 5/21/2018 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MX: Expanding Rural Finance (P153338) PHINDIRITBL  Volume of Bank Support: Lines of Credit - SME (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 104.00 137.73 187.00 Date 01-Sep-2015 30-Sep-2017 31-Dec-2017 31-Dec-2020 PHINDIRITBL  Number of final beneficiaries with loans financed with project funds (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 75,714.00 76,394.00 41,555.00 Date 01-Sep-2015 30-Sep-2017 31-Dec-2017 31-Dec-2020 PHINDIRITBL  Number of final microfinance beneficiaries financed with project funds (cumulative) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 64,997.00 64,758.00 24,945.00 PHINDIRITBL  Female beneficiaries as a share of total beneficiaries financed by the project. (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 84.00 81.41 60.00 5/21/2018 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MX: Expanding Rural Finance (P153338) PHINDIRITBL  Share of loan recipients from marginal municipalities financed by the project. (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 15.00 PHINDIRITBL  Average NPL rate for FND lending to PFIs under the project-funded credit line (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.66 1.30 5.00 Date 01-Sep-2015 30-Jun-2017 31-Dec-2017 31-Dec-2020 PHINDIRITBL  Percentage of FND branch offices using the new core banking system. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 01-Sep-2015 30-Sep-2017 31-Dec-2017 31-Dec-2020 PHINDIRITBL  Number of PFIs that receive capacity building from FND (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 145.00 178.00 215.00 725.00 Date 01-Sep-2015 30-Jun-2017 31-Dec-2017 31-Dec-2020 5/21/2018 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MX: Expanding Rural Finance (P153338) PHINDIRITBL  Submission of operational tracking data (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Sep-2015 30-Jun-2017 31-Dec-2017 31-Dec-2020 PHINDIRITBL  Number of PFIs registered to receive client feedback on Financial Consumer Protection Agency's (CONDUSEF) website (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 107.00 184.00 188.00 200.00 Date 01-Sep-2015 30-Jun-2017 31-Dec-2017 31-Dec-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P153338 IBRD-85550 Effective USD 400.00 400.00 0.00 230.05 169.95 58% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P153338 IBRD-85550 Effective 24-Nov-2015 29-Apr-2016 13-Jul-2016 31-Dec-2020 31-Dec-2020 Cumulative Disbursements 5/21/2018 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MX: Expanding Rural Finance (P153338) Restructuring History Level 2 Approved on 02-Dec-2016 Related Project(s) There are no related projects. 5/21/2018 Page 7 of 7 Public Disclosure Copy